Slight rise in March sales

London retailers fared better than the UK as a whole in March but sales growth dived well below last year's rise according to the latest figures.

The British Retail Consortium (BRC) reported sales in March were two per cent higher in London than a year earlier, better than the 1.6 per cent overall drop in sales seen across the country.

However, this figure was smaller than last year's growth of 10.8 per cent.

Stephen Robertson, BRC director general, said: "Grim weather snatched away much of the boost that many retailers would normally expect from Easter but the increased attraction of London to eurozone visitors and a strong focus on delivering, better than ever, value for money are working to keep London sales growth positive."

Retail footfall weakened slightly, though remained just above its year-earlier level, the BRC said. The majority of overseas shoppers were western European, taking advantage of the strong euro, while American visitors were discouraged by the weak dollar.

Food benefited from Easter but elsewhere, underlying trade slowed. Clothing and footwear sales were particularly tough, despite continued discounting.

Homewares, especially larger purchases, continued to struggle as consumers faced shrinking disposable incomes.

Retailers have been experiencing shrinking sales as customers tighten their belts.

Increased costs and difficulty in securing credit are squeezing household incomes, and several retailers have reported stalling growth.